According to Chilean analyst Decofrut, provider of market information and quality control services to the international fresh fruit industry, a total of 1.5 million kilos of kiwifruit has been exported to the UK in the first 16 weeks of this season already, compared to 928,900kg in this period in 2004.
Quality is high and yields are meeting demand due to the improvements made by growers and exporters alike to reach the standards of the UK and EU markets and to fight off competition from both New Zealand and Italy.
“We have experienced significant increases in the UK over the last few seasons,” says European-Asian marketing manager for the Chilean Fresh Fruit Association (CFFA), Christian Carvajal. “More people are turning to Chilean kiwis, but nevertheless we still have extremely strong competition from New Zealand.”
The Chilean kiwifruit industry also comes up against European competition at times and has seen the seasons overlap this year. “Chile’s season comes a month before New Zealand kiwifruit hits the market, and after the Italian season,” explains Jonathan Olins, import director of Poupart Limited. “Usually there is a three or four week gap between Italian produce and Chilean hitting the market, but this season that has not been the case. Italy’s crop is very strong and consumers do not want to move over yet.”
Importer Poupart, which works with Subsole and Copefrut exclusively for non-supermarket trade in the UK, is in its fourth season of importing kiwifruit into the UK. Olins maintains that the Chilean kiwifruit industry is crucial to his business, saying that Poupart has built up a good business based on the fruit’s continuity and quality.
However, there are still some obstacles for the Chilean kiwifruit industry to get through within the UK market; the UK’s multiples are a difficult club to get into. Exporter Copefrut has discovered that demand has not automatically produced a good price this season. “We found that demand this season was slow to begin with but quickly increased to normal levels. It has been growing as the season has advanced,” says Ricardo Gonzalez, Copefrut’s marketing manager for Europe and North America. “Unfortunately, and in contrast to last season, the tremendous competition among the supermarket chains has created a downward pressure on prices.”
Produced in the Fourth Region, in northern Chile, the main variety of kiwifruit grown and exported to the UK is Hayward. The fruit is typically available from mid-March until the end of November, and most volumes are shipped by the end of May. Now amongst the world’s leading kiwifruit producers, Chile first started to grow the product in the 1980s, and the fruit has adapted well to local climatic conditions.
“In terms of climate, the 2007 kiwifruit season has been exceptional, with dry, favourable growing conditions,” says Gonzalez. “In our case, our harvested fruit has excellent levels of dry material which, along with good sugar levels, gives the consumer a better eating experience.”
Since export has become a serious business there have been many changes for Chilean growers and exporters, mainly due to the success of EurepGAP benchmarked standard ChileGAP. Up until 10 years ago, there were a lot of individual Chilean kiwi producers, but as supplies increased and prices dropped, many consolidated. Today, there are several large players, which are focused on enhancing quality and boosting production efficiency.
“We do not have a lot of exporters but what we do have is a small core who are focused on the maturity levels of fruit. These producers have taken the business to another level,” says Carvajal. “The main challenge was making the product homogenous, which is where New Zealand does a good job. We have been successfully applying quite a few of their methods and practices.”
Olins agrees with this and has witnessed the change: “[The industry] has had to improve over the years,” he says. “Quality has improved. Chilean kiwifruit used to be treated as the poor relation to New Zealand’s crop, but it has got much better.”
From an exporter’s point of view, the UK market is a rewarding yet challenging one. Gonzalez comments: “The UK market is a good market not only because consumers are buying more fruit but also because they are buying smaller sizes.”
“It is very demanding in terms of quality, certifications and fulfilment of programmes, but at the same time it is a very consistent market to sell our fruit to.”
This relationship with the UK is one that Chilean kiwifruit growers and exporters are fighting to maintain. “Chile is trying to increase and enhance its kiwi offer, not just in terms of volume but also in terms of quality and variety,” continues Gonzalez. “It is working to sell a premium product with a higher content of dry matter and with all the certifications that guarantee produce. Producers are slowly incorporating new products like the Gold, which also enhances our offer.”
The CFFA is making sure these efforts are not wasted, with a promotional programme to keep the fruit in the minds of consumers. Carvajal says that the CFFA has been asked to do this by its distributors and is now pushing kiwifruit into the limelight. “If we invest in promotional support to get more shoppers to try our kiwis and see for themselves that they are not rock hard and have a good maturity level, we believe we can extend our export window,” he says.
According to director of Decofrut, Manuel Alcaino, Chile should expect a good season this year due to the fact that northern hemisphere stocks of kiwifruit and other top-selling species, like apples and pears, may run out, forcing suppliers to shop across the equator.
“Stocks of stored fruit in both the US and Europe are significantly lower than in previous years, which makes for good prospects for southern-hemisphere fruit in general,” says Alcaino. “The biggest competition for southern-hemisphere apples, pears and kiwis is the domestic fruit that has been grown in our target markets like the EU and Europe, and stored.
“The prediction is that we are heading for a very good season. We expect to see some increases.”
This anticipation is shared across the industry, with Chilean kiwifruit already making a steady trade in the UK’s wholesale markets and retail multiples.“We have now stored our harvests, and for the bigger sizes we look forward with optimism to the stored fruit market,” says Gonzalez.
The coming season looks good for importers in the UK too, with volumes set to be higher than ever. Statistics predict a good season with a massive increase in 2006, when 8.8m kg was exported, compared to 6.4m kg two years previously. “It looks like a good season ahead. There will be continuity with a plan of production and therefore the marketplace should be stable,” says Olins.
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